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Inform receives $15 Million investment from Spark Capital

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Inform Technologies, a technology solution for established media brands, has received a $15 million investment from Spark Capital, a Boston-based venture fund focused on the intersection of the media, entertainment and technology industries.

The company said in their PR they are going to use the funds to accelerate growth. The company also claims nearly 100 media brands use Inform’s journalistic technology to enhance their sites.  

Founded in 2004, Inform currently works with nearly 100 major media brands to help them ensure that their sites are content destinations and offers editorial-quality features that keep readers engaged on their sites longer – and that increase page views and revenue potential.

Inform’s key offering is a technology solution that acts as an extra editor. It starts with a page of text, and then, with editorial precision, it automatically creates and organizes links to relevant content from the media property’s site, its archives, from affiliate sites and/or anywhere else on the Web. As a result, each page on a site becomes a richer multimedia experience.

Said James Satloff, CEO of Inform, “Media companies face significant challenges online. They need to attract new unique visitors, create an experience that compels those readers to spend more time consuming more pages, and then turn those page views and time on site into revenue. We believe that the Inform solution enables them to do exactly that.”

Longstanding Inform clients include Conde Nast, Crain Communications, IDG, The New York Sun and Washington.Post.Newsweek Interactive. In recent months, 30 additional media properties have engaged Inform – many already running Inform’s technology on their sites.

Inform uses artificial intelligence and proprietary rules and algorithms to scan millions of pages of text and read the way a journalist does – identifying key “entities,” such as people, places, companies and products, and recognizing how they connect, even in subtle and context-specific ways. The software continually teaches itself – in real time – how information is related and automatically updates links and topics as the context changes.

Santo Politi, Founder and Partner at Spark Capital, commented on the following “Established media brands need cost-effective ways to compete with each other and, importantly, with other online presences, such as search. They need depth and richness in their content so they’re true destinations and so readers spend more time on the sites and click through more pages. Inform provides a truly elegant – and so far very successful – solution for that. While allowing the publication to remain in full control of its content and editorial integrity, Inform automatically enriches a site by enabling it to leverage its own content, its archives, archives of affiliates and the web overall. In effect, it enables a publication to expand its editorial capabilities without expanding its staff. We believe the potential for Inform’s growth is substantial.”

 “We’re delighted that our new investor understands how effectively we partner with media companies and how our technology serves their business and editorial objectives. We will use the capital to expand our operations and implement our approach to accelerating our growth.” Said Joseph Einhorn, Co-Founder and CTO of Inform.

We went over Web and researched a bit over the company. It turns out the company has shifted the focus quite often over the past several years. In 2005 the company once said to be around to provide a useful news interface – both blog and non-blog – and to show the interconnectedness of all of the content. Later the same year a major re-launch and re-design struck the company and they have given up on the Ajax based pop-up and have also added vide and audio, which hardly fits into the concept of contextual connection between two content areas/texts based on their semantic textual analysis, unless they have come up to an idea how to read inside and understand image and video files. Google, by contrast, seems to have come up to technology that claims to recognize text in images. In late 2006 the company brought to the market their so called Inform Publisher Services, which was aimed at big web publishers, and was designed to help them increase page views by adding relevant links to other, hopefully related, content in their archives.

The new service was meant to automatically create links in existing articles, which link to a results page containing relevant content from the site as well as from the web, including blogs and audio/video content. Sounds like Sphere and LinkedWords. Basically their latest offering comes closer to what the Inform.com is today.

Some critics on the service have published the following doubts online over a few blogs we have checked out in regard to Inform.

Isn’t this the opposite of semantic web, since they’re sucking in unstructured data? How does their relatedness stuff compare to Sphere and how do their topic pages compare to Topix?

Marshall Kirkpatrick from RWW has put it that way when the question about standards and openness was raised.

“Inform crunches straight text and outputs HTML. I asked whether they publish content with any standards based semantic markup and they said that actual publishing is up to publishers. That’s a shame, I don’t see any reason why Inform wouldn’t participate in the larger semantic web to make its publishers’ content more discoverable. Perhaps when you’ve got 100 live clients and now $15m in the bank, it feels like there’s no reason to open up and play nice with a movement of dreamers having trouble getting other apps out of academia.”

Competition include Sphere, Proximic, Lijit, Adaptiveblue, LinkedWords, somehow NosyJoe, Jiglu, among others. Other, although remote, players in this space include Attendi, Diigo, Twine and Freebase.

More about Inform

Inform Technologies is a new technology solution for established media brands that automatically searches, organizes and links content to provide a rich, compelling experience that attracts and retains readers.

With editorial-quality precision, the technology understands textual content and recognizes subtle differences in meaning. Further, the technology automatically creates links – in articles and on instantly generated topic pages – to relevant content. This deepens a site and engages readers.

Inform’s Essential Technology platform is an artificial intelligence and natural language-based solution that serves almost as an “extra editor” using rules and algorithms to “read” millions of pages of content, identify entities, such as people, places, companies, organizations and products, and topics, to create intelligent links to other closely related information. The technology is also able to recognize subtle differences in meaning and distinguish people, places and things based on local geographies or unique identities.

Inform’s Connected Content Solution and Essential Technology Platform are used by major media brands including CNN.com, WashingtonPost, Newsweek Interactive, Conde Nast, Meredith, IDG and Crain Communications.

Founded in 2004, the company is privately held and has approximately 60 employees, including mathematicians, linguists, programmers, taxonomists, library scientists and other professionals based in New York and India.

About Spark Capital

Spark Capital is a venture capital fund focused on building businesses that transform the distribution, management and monetization of media and content, with experience in identifying and actively building market-leading companies in sectors including infrastructure (Qtera, RiverDelta, Aether Systems, Broadbus and BigBand), networks (College Sports Television, TVONE and XCOM) and services (Akamai and the Platform). Spark Capital has over $600 million under management, and is based in Boston, Massachusetts. Spark has committed to investing $20 million in CNET equity.

More

http://www.inform.com/ 
http://www.inform.com/pr.012308.html
http://www.readwriteweb.com/archives/inform_funding.php
http://www.micropersuasion.com/2005/10/a_new_rss_reade.html
http://www.paidcontent.org/pc/arch/2005_10_16.shtml#051884
http://www.techcrunch.com/tag/inform.com/
http://blog.express-press-release.com/2007/10/19/a-bunch-of-intelligent-and-smart-content-tagging-engines/
http://www.techcrunch.com/2007/10/19/twine-launches-a-smarter-way-to-organize-your-online-life/
http://blog.nosyjoe.com/2007/09/06/nosyjoecom-is-now-searching-for-tags/
http://nextnetnews.blogspot.com/2007/09/is-nosyjoecom-next-clustycom.html
http://kalsey.com/2007/10/jiglu_tags_that_think/
http://mashable.com/2007/10/15/jiglu/
http://www.nytimes.com/2005/10/17/technology/17ecom.html
http://www.techcrunch.com/2005/10/16/informcom-doesnt/
http://www.techcrunch.com/2005/10/24/a-second-look-at-informcom/
http://www.techcrunch.com/2005/12/05/informcom-re-launches-with-major-feature-changes/
http://business2.blogs.com/business2blog/2006/07/scoop_inform_re.html
http://www.techcrunch.com/2006/07/30/informcoms-latest-offering/
http://www.quantcast.com/inform.com
http://bits.blogs.nytimes.com/2007/07/04/when-search-results-include-more-search-results/

Accel Partners, Business, Facebook, Founders Fund, Funding, Greylock Partners, Hutchison Whampoa Limited, Internet, Investments, IPO, Meritech Capital, Microsoft, Money, Nokia, Peter Thiel, Public Companies, Samwer brothers, Social Networking, Software, Technology, Web 2.0

After Samwer brothers Nokia is also going to invest in Facebook

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It has been deal time for Facebook over the past months, or year? After Microsoft, the Honk Kong billionaire Li Ka-shing  and the Samwer brothers Nokia is now rumored to be in talk to invest in Facebook. Let’s however first take a look at what the Samwer brothers have gotten last week for their money.

The Samwer brothers, Marc, Oliver, and Alexander, have reportedly taken a stake in the social networking site, according to online sources including Reuters. The three German Internet entrepreneurs, the Samwer brothers, have taken a stake in the social networking site Facebook, Alexander Samwer said. Mr. Samwer, who declined to reveal the size of the stake, said the brothers would now become Facebook’s strategic partners in Europe. “We are going to support the expansion of Facebook in Europe,” It has also been disclosed that the Samwer brothers have offered up less than the $240 million that Microsoft paid for a 1.6% stake in Facebook, but the Samwer brothers’ investment amount, was rumored, is still sizable. Samwer have basically given the following comment: it was a “significant” amount, and less than the $240 million Microsoft paid for a 1.6 percent stake in Facebook in October, which valued the site at $15 billion. Analysts are left to speculate on the exact numbers.

“We think Facebook is, after Google, the most innovative company to have emerged in the last few years. We think it will be the phenomenon for the Internet that Windows was for the desktop,” Samwer said. Pretty serious claim, but it has to be taking into consideration the huge amount of money being poured in Facebook on reportedly less than $200M in revenues for 2007.

More about Samwer brothers

After selling the German Internet auction site Alando.de to eBay for $50 million in shares, the brothers have made names for themselves and have become even more involved with startups since. After a brief spell working for eBay, they then set up ringtone firm Jamba, which they sold to the U.S. company Verisign for $273 million in shares and cash in 2004. Little later they have also invested in the German Twitter clone, Frazr, and a handful of other startups. Interestign fact to note is that the Samwer brothers also invested in the Facebook clone StudiVZ, which was sold about a year ago for $112 million. Taking these facts and achievements into consideration we would not be that far in our conclusions if we say the guys are successful serial entrepreneurs and they have something to do with the social networking, at least in Europe. It already comes as no surprise they are interested to bring the most popular social site into Europe and lock down exclusivity for the market.

As the Samwer brothers are becoming the strategic partners for Facebook in Europe means that Facebook is getting even more serious about its European expansion. With the Samwer brothers having a large, vested interest in the success of Facebook’s growth across Europe, this seems like a pretty good fit considering the interests for all parties involved.

Just a week later and we are seeing today Nokia is also ready to jump the bandwagon of Facebook investors. However, this deal seems to be structured/offered in a little bit different way than pure investment where Nokia is rumored to be in talk for a deal with Facebook to bring the social site on to Nokia handsets in a major way. The Facebook placement could be as prominent as the YouTube button on the main screen of iPhone, online sources indicate. In addition, the deal is said to involve giving Facebook a major slot within Nokia retail products’ displays.

Nokia purchasing a stake in the company was said on several news sites and professional blogs is something yet to be confirmed. This now makes a little more sense in the light of Facebook’s recent strategic funding by Sawmer Brothers, in an effort to expand in Europe. The Nokia-Facebook deal would probably give the social network instant big-time mobile distribution: Nokia is the world’s largest maker of mobile phones after all.

A senior Nokia executive, speaking on background, declined to go into details about the pact with Facebook: “There is talk of a partnership in the works… it’s safe to say we’re testing the waters and things still have to be worked out.”

Nokia has of late been working on a number of services for the mobile, including its mobile web service Ovi, its mobile social network Mosh, and its most recent acquisitions in the larger media applications space. In October last year, it bought digital mapping provider Navteq for $8.1 billion to eventually offer customers location-based services. Also in October, it announced a deal to provide a year’s free access to Universal’s music catalog on certain Nokia phones. Also, it bought three other smaller companies last year: Avvenu (file sharing on mobiles and between mobile-PC); Twango (media sharing service for the hefty amount of $100 million); and Enpocket (mobile advertising and marketing services). 

On the content side, the potential deal with Nokia could be seen in very positive light for Facebook to drive the site’s usage on the mobile web.

The investment side, although nothing is for sure yet, isn’t that surprising given how many companies and high profile investors have already bought stakes into the Facebook over hyped site. “The remarkable part is how many companies are willing to invest in Facebook at a $15 billion valuation. At best Facebook may be worth even more than that, particularly when you consider sites like Baidu have a market cap in excess of $9 billion.”  Said Duncan Riley, who is an author at Techcrunch.

We don’t know when Facebook may move to an IPO; in his 60 Minutes interview a week ago Mark Zuckerberg said that it might be this year, or next year, or even 2010. What we do know is that an IPO in the current market will unlikely provide a strong valuation for Facebook.

Taking into serious considerations the current stock market conditions and all the US recession talk lately Facebook is highly unlikely to IPO this year. 2009/ 2010 are spoken out as the earliest dates for the Facebook’s IPO, presuming that the market eventually recovers.

Other less optimistic people are commenting that an investment at that $15B valuation is nothing less than idiotic and give the following details in support of their claims.

  1. When MSFT made investment in FB, YHOO was trading at $25/share. That is 20% higher than todays price. No way is FB worth 55% of Yahoo’s valuation of $27B today.
  2. Yahoo has revenue of over $6.5 Billion. FB generated $150M.
  3. Yes, FB is growing. But, YHOO has a real business and FB is trying to figure out how to make money.
  4.  Competition: FB has more competition than YHOO. YHOO has to deal with GOOG, MSFT and ASK. FB has to deal with the 15+ social networking sites plus GOOG and ASK (expected soon!?). 

In opposition to these claims and comparisons, other people find it quite shocking that this isn’t apparent to most people why FB is put at such high valuation and is being chased by major companies.

A stake in FB to certain companies is a priceless gamble. They are not trying to own a stake so that if/when FB becomes a revenue source they too can share in the benefits and see an incredible ROI. What they are doing is trying to solidify a relationship (as exclusive as possible) so that as FB carves out their experimental business model these companies will be able to couple themselves to it somehow. It’s more of a bribe than an investment, sources claim.

Companies like Microsoft and Nokia are essentially saying “We will pay you a few hundred million to establish the beginnings of what will be a mutually beneficial and exclusive relationship. A small portion of your company will be an added benefit and you can use that to broadcast a large valuation to the world to further legitimize your business despite an unproven and incomplete model”.

Facebook would like to continue to own and exploit their users’ private data without sharing in these profits and simply providing a useful service. Unfortunately, consumers are quickly learning that this may be something to be concerned about. There is a fast growing demand for openness that will hurt their walled garden philosophy. At some point an open and selfless alternative will arise and Facebook will shrink in order to remain a viable player for the long run. The catch 22 will lead to the inevitable deflation of Facebook.

Facebook is hugely popular social networking site, second only to MySpace in terms of users. Other popular social networking sites are Bebo and Friendster, the second one tried to acquire Facebook in 2004 for just $10M.

The latest comScore metrics, we have seen, revealed that Facebook is actually site #16 (others claim it is #6 today) in US with nearly 70M unique visitors per month and more than 50M registered and active users.
 
Peter Thiel, cofounder of PayPal and managing partner of the Founders Fund was the first angel investor in the company. He invested $500,000 into Facebook in early 2004. Later Accel Partners poured $12.7 million more in funding, at a valuation in the $100 million range.

The next year [2006], Facebook received $25 million in funding from Greylock Partners and Meritech Capital, as well as returning investors Accel Partners and Peter Thiel. The pre-money valuation for this deal was in the $525 million range.

Facebook is reported to have turned deals down from Friendster, Yahoo, Viacom  and the mighty Google a couple of months ago when Zuckerberg has chosen Microsoft to partner with. Microsoft de-facto has invested $240 million into Facebook for just 1.6 percent of the company in October 2007. This put the company’s valuation at over $15 billion on just $150 million in annual revenues.

Total funding for the company is now exceeding $400M as this number is highly speculative given the fact no public information is available for both the Samwer brothers’ investment and the Nokia’s eventual equity purchase.

It would really be interesting to find out what’s the equity position Mr. Li Ka-shing, Samwer brothers have secured and eventually Nokia will have for their money considering what Microsoft has bought for their $240M.

More

http://www.facebook.com
http://www.nokia.com/
http://mashable.com/2008/01/15/facebook-samwer-brothers/
http://www.techcrunch.com/2008/01/20/nokia-to-invest-in-facebook/
http://www.paidcontent.org/entry/419-nokia-and-facebook-working-on-mobile-deal-could-involve-investment/
http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSL1562367720080115
http://www.huffingtonpost.com/2008/01/16/facebook-hits-europe_n_81730.html
https://web2innovations.com/money/2007/11/30/hong-kong-billionaire-li-ka-shing-invests-60m-in-facebook-funding-totals-33820m-to-date/
http://www.crunchbase.com/company/facebook
http://www.techcrunch.com/2007/11/30/another-60-million-for-facebook
http://kara.allthingsd.com/20071130/facebook-nabs-60-million-investment-from-li-ka-shing
http://www.hutchison-whampoa.com/eng/about/chairman/chairman.htm
http://www.iht.com/articles/2006/12/03/business/brothers.php
http://venturebeat.com/2008/01/15/samwer-brothers-invest-in-facebook/
http://www.moconews.net/entry/419-nokia-to-buy-navteq-for-77-billion/
http://www.paidcontent.org/entry/419-facebook-gets-investment-from-german-online-entrepreneurs-samwer-brothe 
http://www.moconews.net/entry/419-nokia-buys-file-sharing-service-avvenu

Benchmark Capital, Business, Funding, Goldman Sachs, Internet, Investments, Millennium Technology Ventures, Money, Omidyar Network, Semantic Apps, Semantic Web, Software, Technology, Venture Capital, Web 2.0

Massive second round of funding for Freebase – $42 Million

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Freebase, the open and shared database of the world’s knowledge, has raised a whopping amount of money in its Series B round of funding, $42 Million, in a round that included Benchmark Capital and Goldman Sachs. Total funding to date is $57 million.

The investment is considerable, and comes at a time when a number of experts are betting that a more powerful, “semantic” Web is about to emerge, where data about information is much more structured than it is today.

In March 2006, Freebase received $15 million in funding from investors including Benchmark Capital, Millennium Technology Ventures and Omidyar Network.

Freebase, created by Metaweb Technologies, is an open database of the world’s information. It’s built by the community and for the community – free for anyone to query, contribute to, build applications on top of, or integrate into their websites.

Already, Freebase covers millions of topics in hundreds of categories. Drawing from large open data sets like Wikipedia, MusicBrainz, and the SEC archives, it contains structured information on many popular topics, including movies, music, people and locations – all reconciled and freely available via an open API. This information is supplemented by the efforts of a passionate global community of users who are working together to add structured information on everything from philosophy to European railway stations to the chemical properties of common food ingredients.

By structuring the world’s data in this manner, the Freebase community is creating a global resource that will one day allow people and machines everywhere to access information far more easily and quickly than they can today.

Freebase  aims to “open up the silos of data and the connections between them”, according to founder Danny Hillis at the Web 2.0 Summit. Freebase is a database that has all kinds of data in it and an API. Because it’s an open database, anyone can enter new data in Freebase. An example page in the Freebase db looks pretty similar to a Wikipedia page. When you enter new data, the app can make suggestions about content. The topics in Freebase are organized by type, and you can connect pages with links, semantic tagging. So in summary, Freebase is all about shared data and what you can do with it.

Here’s a video tour of how does Freebase work. Freebase categorizes knowledge according to thousands of “types” of information, such as film, director or city. Those are the highest order of categorization. Then underneath those types you have “topics,” which are individual examples of the types — such as Annie Hall and Woody Allen. It boasts two million topics to date. This lets Freebase represent information in a structured way, to support queries from web developers wanting to build applications around them. It also solicits people to contribute their knowledge to the database, governed by a community of editors. It offers a Creative Commons license so that it can be used to power applications, on an open API.

This is one of the biggest Series B rounds for the past 12 months. And probably what Google tries to do with its Knol to Wikipedia is the same what Freebase tries to achieve too – replicate and commercialize the huge success of the non-profit Wikipedia.

Other semantic applications and projects include Powerset, Twine, AdaptiveBlue, Hakia, Talis, LinkedWords, NosyJoe, TrueKnowledge, among others.

Peter Rip, an investor in Twine has quickly reacted on the comparison between the two Freebase and Twine the VentureBeat’s Matt Marshall made.

As an investor in Twine, allow me correct you about Twine and Metaweb’s positioning. You correctly point out that Metaweb is building a database about concepts and things on the Web. Twine is not. Twine is really more of an application than a database. It is a way for persons to share information about their interests. So they are complementary, not competitive.

What’s most important is that Twine will be able to use all the structure in something like Metaweb (and other content sources) to enrich the user’s ability to track and manage information. Think of Metaweb as a content repository and Twine as as the app that uses content for specific purposes.

Twine is still in closed beta. So the confusion is understandable, especially with all the hype surrounding the category.

Nova Spivack, the founder of Twine has also commented on.

Freebase and Twine are not competitive. That should be corrected in the above article. In fact our products are very different and have different audiences. Twine is for helping people and groups share knowledge around their interests and activities. It is for managing personal and group knowledge, and ultimately for building smarter communities of interest and smarter teams.

Metaweb, by contrast, is a data source that Twine can use, but is not focused on individuals or on groups. Rather Metaweb is building a single public information database, that is similar to the Wikipedia in some respects. This is a major difference in focus and functionality. To use an analogy, Twine is more like a semantic Facebook, and Metaweb is more like a semantic Wikipedia.

Freebase is in alpha.

Freebase.com was the first Semantic App being featured by Web2Innovations in its series of planned publications where we will try to discover, highlight and feature the next generation of web-based semantic applications, engines, platforms, mash-ups, machines, products, services, mixtures, parsers, and approaches and far beyond.

The purpose of these publications is to discover and showcase today’s Semantic Web Apps and projects. We’re not going to rank them, because there is no way to rank these apps at this time – many are still in alpha and private beta.
More

http://www.metaweb.com/about/
http://freebase.com
http://roblog.freebase.com
http://venturebeat.com/2008/01/14/shared-database-metaweb-gets-42m-boost/
http://www.techcrunch.com/2008/01/16/freebase-takes-42-million/
http://www.dmwmedia.com/news/2008/01/15/freebase-developer-metaweb-technologies-gets-$42.4-million
http://www.crunchbase.com/company/freebase
http://www.readwriteweb.com/archives/10_semantic_apps_to_watch.php
http://en.wikipedia.org/wiki/Danny_Hillis
http://www.metaweb.com
http://en.wikipedia.org/wiki/Metaweb_Technologies
https://web2innovations.com/money/2007/11/30/freebase-open-shared-database-of-the-worlds-knowledge/
http://mashable.com/2007/07/17/freebase/
http://squio.nl/blog/2007/04/02/freebase-life-the-universe-and-everything/

Accel Partners, Business, Entertainment, Funding, Internet, Media, Money, Multimedia, Technology, video, Web 2.0

Virtual television network start-up has raised $8 million in second round

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The virtual television network start-up RayV Ltd. has raised $8 million in its second financing round as the money is coming from Accel Partners.

RayV describes its business as follows: “Why is everybody so hell-bent on replacing TV? We here at RayV, like TV. The only thing is, we want more of it.

Sure, we love the big networks – after all, they show us all the live Paris Hilton we can handle – and lots of other stuff too. We just want it at high quality on our TVs and on our PCs, anywhere in the world… and more…

We also want to watch live news channels from smaller, independent sources with correspondents around the world. We want channels of live performances from the newest bands at the University of Calcutta. And live coverage of rugby matches from England. And short-film channels from NYU Film School students. And coverage of local politics. And cooking channels for Vegans. And cooking channels for Carnivors. And…

Well, you get the point: TV – real, live, 24-hour TV channels – at TV quality. For the PC, for the TV. For anyone to watch… and for anyone to broadcast. At no cost. We like TV. In the next months, we’re going to give everyone the power to make more of it. Much more!”

Sounds like Joost.. or no. Too early to say whatever, still nothing is publicly available so only time will tell.

Other online sources are describing the company that it has plans to offer a new way for “consumers to find, review, and talk about local businesses. A cross between a web-based social community and an online business directory, RAYV is where people go to express their opinions on any type of local business and get recommendations from a trusted source – their peers.” And yet another description: RayV is developing “proprietary internet protocols forming a generic grid network, enabling anyone to broadcast LIVE TV to an unlimited amount of concurrent viewers at zero cost.”

Which is which? If the second one is anywhere close the truth it sounds intriguing from technological perspective, which anyone of the leading video sites on Web might be quite interested in.

Founded 20 months ago by Omer Luzzatti, Ron Zuckerman, and Oleg Levy, the company has been operating in stealth mode. Levy was previously an executive at Kagoor, which was acquired by Juniper Networks Inc. (Nasdaq:JNPR) in 2005, and then served at Juniper’s Israeli R&D center. Zuckerman has been a well-known entrepreneur for the past 15 years. He has been an angel investor in several start-ups, including Wintegra Inc., Aeronautics Defense Systems Ltd., Koolanoo Group Ltd., Attunity (Nasdaq: ATTU), Can-Fite BioPharma Ltd. (TASE:CFBI), and e-Glue Business Technologies Ltd.

The company is based in both locations Tel Aviv, Israel and New York, US.

Accel Partners was founded 24 years ago and manages $4 billion. It is one of the most active venture capital funds in Israel, and has offices in California, Europe, and China. Accel Europe manages $1 billion in two funds, both of which make investments in Israel.

Other video and TV related ventures Aceel has put money in are Brightcove and Metacafe.

Israel on the other hand seems to be pretty strong in the Internet TV arena, with some leading companies like BlogTV, Metacafe, and 5min.

No publicly available information was found about their first round of funding and who their other investors are.

More

http://www.rayv.com/
http://www.accel.com/
http://www.globes.co.il/serveen/globes/docview.asp?did=1000261513&fid=942
http://archive.globes.co.il/ENGLISH/index.asp?ID=1000261513
http://www.thealarmclock.com/mt/archives/2007/10/israeli_virtual.html
http://www.marketwatch.com/news/story/virtual-tv-co-rayv-raises/story.aspx?guid=%7BC1A7A1B5-0344-4585-94E0-D20D1B1C5116%7D
http://israelplug.com/business/israeli-tv-startup-rayv-raises-8m/

Business, Funding, Internet, Investments, Money, OpenView Venture Partners, Software, Technology

Online storage sector is hot, yet another player is entering the game

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Just it was a couple of days ago when we reported and analyzed the two major acquisitions within the online storage sector IBM announced it has acquired XIV, an Israeli company for what is believed to be $350M and some months ago EMC Corporation has snatched up Mozy for $76M. Today we have dug up yet another deal from the same industry.

Intronis Technologies, the parent company of eSureIt’s online storage and backup services, has raised $5 million in Series A round of funding. eSureIt claims to have about 5,000 customers. The funding comes from OpenView Venture Partners, a small Boston based investment fund. 

The sector is under no doubt overcrowded and there are many companies offering similar solutions and services yet the business has proved lucrative with recently some major exit hitting the sector. While eSuireIT has been launched in 2003, we think the real entrance for the company into the online storage and back up market is today after getting the crucial funding.

More about eSureIT

The founders of Intronis have more than 30 years of combined IT consulting, computer system and software design and network installation for small and medium sized businesses and individuals. In the late 1990’s, the founders, after talking with dozens of their clients and other IT professionals came to the realization that most small businesses were not backing up their data at all. The few companies that did backup, often did not properly rotate backup tapes, did not verify that backups were successful, and almost always stored their backup storage devices onsite, often right on top of their computers. This recognition led to the creation of Intronis Technologies and after three years of research and development, software design and testing, the launch of the eSureIT online backup service in 2003.

Essentially eSureIT is an online backup service that allows you to backup your valuable computer data over the Internet. eSureIT automates the process of backing up your data offsite.  Backups begin automatically and your data is sent to and stored in two redundant storage facilities located hundreds of miles apart.  Your data is encrypted, and always remains encrypted using a unique 256 bit encryption key that only you have.  Moreover, with this data backup solution, you can restore your files as often as you need to and at any time day or night, in as easy as a few clicks of your mouse. eSureIT has pricing plans starting at $9.95 for home users and $24.95 for businesses.  They are also offering a free 30-day software trial with no obligation whatsoever.

More about OpenView Venture Partners

OpenView is an expansion stage venture capital fund, with a focus on high-growth software, internet, and technology-enabled companies. Much of the team’s success has been driven by its active role in providing its portfolio companies with strategic value-add services and highly practical operating expertise. OpenView Venture Partners is based in Boston, MA, and invests globally. The current OpenView fund encompasses $100M in committed capital from leading institutional and private investors worldwide, as well as from the members of the OpenView team.

More

http://www.esureit.com/
http://www.intronis.com/
http://mashable.com/2007/10/10/esureit-funding/
http://www.thealarmclock.com/mt/archives/2007/10/online_backups_1.html
http://www.openviewpartners.com/
https://web2innovations.com/money/2008/01/03/two-major-acquisition-deals-within-the-online-storage-space/

Advertising, Business, Funding, Internet, Investments, Lightspeed Venture Partners, Money, Palomar Ventures, Retail, Shopping, Web 2.0

Behavioral recommendation service for shoppers raises $10 Million, market heats up

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A couple of months ago MyBuys raised $10 Million in Series B funding aimed to help online merchants sell more by utilizing behavioral targeting techniques. The company provides software to ecommerce stores that allows them to serve up ads and products based on your behavior – for example, tracking what you search for and showing related items during a future visit. Lightspeed participated in this latest round, which was led by Palomar Ventures.

“The funding further validates MyBuys’ unmatched targeting ability using our proprietary, patent pending technology,” said Robert E. Cell, CEO of MyBuys. “This investment will enable us to significantly increase our market momentum.”

MyBuys, which introduced MyBuys 3.0 earlier this year, delivers the industry’s first 1:1 behavioral recommendation service that targets consumers both while they are shopping and in follow up emails. MyBuys presents products a consumer is truly interested in buying, which enables online retailers to achieve extraordinary 300% higher revenue per customer interaction.

“As pressure grows to maintain high growth rates in ecommerce, MyBuys’ service will become a competitive requirement for online retailers,” said Amanda Reed, partner at Palomar Ventures. “With this financing, MyBuys will have an opportunity to further its ability to provide the greatest revenue lift for online retailers.”

“With its innovative approach to targeting and optimization, MyBuys offers the most effective solution to this burgeoning market,” said Peter Nieh, partner at Lightspeed Venture Partners. “MyBuys can significantly improve the profitability of online merchants by enabling them to more fully monetize the website traffic that they have spent substantial dollars to generate.”

These services are used by online retailers to show you potentially interesting merchandise, by tracking what you have already been looking at or buying before. If you do a lot of online shopping for designer jeans, a service like MyBuys may recommend especially popular or discounted designer jeans to you.

The company makes money by receiving a cut of revenue from the retailer when users purchase suggested products.

Mybuys is already being used in retail sites such as camera site Ritz Interactive, urban style site Karmaloop, and fabric site Hancock Fabrics. The company also said it builds behavioral profiles on each consumer.

More about MyBuys

MyBuys is a 1:1 behavioral recommendation service for online merchants. MyBuys builds deep behavioral profiles on each consumer resulting in the highest converting recommendations. By reaching consumers on a client’s web site, through email, and in RSS feeds, retailers realize more repeat visits, increased conversions, and larger order sizes. MyBuys generates revenues at 300% the rate of traditional marketing programs, with no upfront costs and a pay for performance model, so customers realize immediate results with no risk.

MyBuys 1:1 behavioral product recommendation service is a truly comprehensive service proven to deliver real results such as:

• Increasing conversion rates with relevant, personal recommendations

• Re-activating former customers by targeting their interests

• Increasing basket size through relevant, personal cross sells and up sells

• Recovering lost sales due to shopping cart abandonment or items out of stock

• Increasing overall lifetime customer value by driving your customers to your site more often to make more purchases

MyBuys is based in Redwood City, California and is managed by Robert Cell (CEO), Mark Weiler (VP of Engineering), and Paul Rosenblum (VP of Marketing).

Management team

Robert Cell
Chief Executive Officer

Robert Cell is an expert in retail, advertising, and consumer products. Most recently, Robert was Chief Executive Officer of AdSpace Networks, where he led the company through rapid growth and strategic restructuring to focus on becoming a mall advertising network while also growing, and subsequently, divesting its CoolSign video merchandising enterprise business. Under his leadership as Chief Operating Officer at Blue Martini Software, a pioneer in e-commerce solutions, the market capitalization tripled, license revenue doubled, and net results increased by $40M. Prior to Blue Martini, Robert served as the Vice President of Corporate Development for Kellogg Company and as General Manager for its Lender’s Bagel Division. In addition to leading Kellogg’s external growth and acquisitions, he led the turnaround of the Lender’s Bagel Division, tripled its value, and divested the unit for nearly $300M. Preceding his tenure with the Kellogg Company, he was Managing Director and co-founder of Deloitte and Touche LLP’s Midwest Corporate Finance practice responsible for advising the region’s clients on acquisitions and joint ventures. Robert holds an MBA with High Distinction and a BSE from the University of Michigan. 
 
Paul Rosenblum
Vice President of Products and Strategy

Paul Rosenblum has over 20 years of experience defining the strategic direction of successful products for the retail industry. Prior to MyBuys, Paul was Entrepreneur in Residence at Redpoint Ventures. Earlier, he was responsible for product strategy at Pay By Touch, the leading biometric payment system for retailers. Previously, he served as Vice President of Marketing at Movaris, where he repositioned the company as an early leader in Sarbanes-Oxley compliance systems for Fortune 1000 companies. As Vice President of Product Marketing at Blue Martini Software, he was responsible for defining retail eMerchandising. Prior to that, he was Senior Director of Product Marketing at Siebel Systems where he was responsible for the definition of Siebel’s flagship sales effectiveness products and launched Siebel’s first vertical market solutions. Paul holds an SB in Electrical Engineering and Computer Science from the Massachusetts Institute of Technology.

Lisa Joy Rosner
Vice President of Marketing

Lisa Joy Rosner has over 16 years of experience launching, rebranding, and driving revenue for high-tech companies in Silicon Valley. Lisa joined the MyBuys team from BroadVision Inc., an early innovator of personalized e-commerce solutions. During her four-year tenure as Vice President, Worldwide Marketing, she re-launched the company, introduced three new products into the global market, and was part of the team that returned the company to profitability. Previously, as Vice President, Marketing, at DecisionPoint Applications, a financial performance management software provider, she transformed the company brand, aligned sales and marketing processes and added industry-leading companies to the customer base. Prior to that, Lisa launched Market-Touch Corporation where she pioneered and evangelized a new category in CRM – Sales Effectiveness. She has also served in senior business development, marketing and education management roles at Brio Technology, SGI, and Oracle Corporation. Lisa graduated Summa Cum Laude from the University of Maryland with a BA in English Literature. 

Mark Weiler
Vice President of Engineering

Mark Weiler provides the technical and visionary leadership to MyBuys Engineering team. He brings over 16 years of experience in building high quality solutions in the areas of Web Applications, Enterprise Applications, Infrastructure, and Systems software. Most recently, Mark was Vice President Engineering at NorthStar Systems Inc., where he was part of the founding team and was responsible for first 8 versions of the company’s leading Wealth Management and Asset Management solutions. Prior to joining NorthStar, he managed the teams responsible for building B2B connectors and EAI adapters for Extricity (acquired by Peregrine) whose Alliance B2B product line was used to automate supply chains including RosettaNet processes for several major electronics vendors. Before Extricity/Peregrine, he developed a number of products at Microsoft, notably Exchange Server, MAPI, and LAN Manager and he was a key member of the Exchange X.400 Message Transfer Agent on the first four releases of Exchange Server. Mark holds a Bachelors degree in Computer Science and Engineering from the University of California, Santa Barbara. 
 
Len Eschweiler
Vice President, Sales

Len Eschweiler has over 13 years of sales leadership experience in the e-commerce sector. Prior to joining MyBuys, he was an early team member of MarketLive, an industry leading e-commerce platform and solutions provider where he served as Vice President, Sales and Marketing, and most recently headed up European expansion efforts as Vice President of Strategy, Europe. Previously, he was Director of Sales and Marketing for IMS-Net, a start-up focused on serving the needs of commodity trading via an Internet based trading marketplace. Before entering the software arena, he founded one of the first online music distribution sites for unsigned artists. Len studied computer science at Colorado State University and holds a BS in Finance with a minor in Music from Sonoma State University. 

Shaun Schooley
Vice President, Client Success

Shaun Schooley is charged with ensuring MyBuys clients receive the most efficient deployment and the highest performing implementation of the MyBuys service. He brings over 20 years of senior management experience in marketing. Most recently, he was Vice President of Strategic Marketing at Naehas, a web-based marketing solution to create customized and personalized web pages, where he maintained major client relationships and led follow-up programs for Fortune 500 firms. Prior to Naehas, Shaun spent over 19 years in financial services and technology marketing with companies such as Charles Schwab, Amazon.com, and Wells Fargo. Shaun is a frequent industry speaker at 1:1 marketing events sponsored by the DMA, U.S. Postal Service, and the National Center for Database Marketers. He holds several patents in electronic payment technologies and he holds an undergraduate degree from Hastings College and an MBA from Arizona State University.

More about Lightspeed Venture Partners

Lightspeed Venture Partners is a technology-focused venture capital firm that manages $1.3 billion of capital commitments. We closed Lightspeed VII, a $480 million fund, at the end of 2005. Over the past two decades, our partners have invested in more than 120 companies, many of which have gone on to become leaders in their respective industries. Our team invests in the U.S. and internationally from offices in Menlo Park, China, India, and Israel.

We are proud to have partnered with many exceptional management teams. Our investment professionals have contributed domain expertise and operational experience to help build high-growth, market-leading companies such as Blue Nile (NILE), Brocade (BRCD), Ciena (CIEN), DoubleClick (DCLK), Informatica (INFA), Kiva Software (acquired by AOL), Openwave (OPWV), Quantum Effect Devices (acquired by PMCS), Sirocco (acquired by SCMR), and Waveset (acquired by SUNW). Some of our recent exits include the top-performing tech IPO of 2006, Riverbed Technology (RVBD), and the top enterprise software acquisition of 2006, Virsa Systems (acquired by SAP).

Lightspeed is known to be all about ecommerce. We are only seeing the “tip of the iceberg” in e-commerce, the firm’s top blogger Jeremy Liew wrote in June — he thinks there will be “many more” e-commerce companies that grow to make more than $500 million in revenue by using behavioral targeting and other methods of matching purchasers with products they’re most likely to buy.

More about Palomar Ventures

Palomar Ventures was launched in 1999 by veteran venture capitalists to focus on early stage information technology companies that demonstrate the potential for exceptional growth and market leadership. The founding principle of Palomar is teamwork; we work closely with our portfolio companies to assist them in achieving their objectives. The partners at Palomar have contributed their strategic insight, network of corporate relationships, and recruiting skills to assist in building nearly 50 public companies.

Palomar Ventures is currently investing Palomar III, a $225 million fund, bringing total capital under management to over $500 million. A typical investment involves $2 million to $5 million in capital, and we prefer to act as a lead or co-lead investor early in the process of value formation. We believe that beginning early with a company is the best way to utilize our experience in building value rapidly by focusing the company on a small number of key milestones.

The market

Behavioral advertising and behavioral targeting are both lately becoming yet another hot area in the online marketing space, with Tacoda recently acquired by AOL for an estimated amount of $200-300 million. Start ups are trying to analyze every move you do online and try to hook you up with the right ads, products and services. MyBuys is making no exception it tracks user behavior to help online retailers make better recommendations.

Competition in the field is staggering and some of the names include StyleFeeder relying on community recommendations and raised $1M so far, Wunderloop, Baynote, Matchmine, which also raised $10M recently and not last Aggregate Knowledge, which once used to be a hot start-up in the Silicon Valley.

The demand among online retailers for better behavioral tracking is so high right now that MyBuys and its startup competitors are all able to gather this “low hanging fruit” –Lightspeed Venture Partner’s Peter Nieh explains further.

The market shakeout in behavioral targeting will resemble search engines startup in the 1990’s, Nieh, a Lightspeed Venture Partner, thinks: Many companies were able to search the web, but Google ended up doing it way better than the others, and captured the largest portion of the market.

More

http://www.mybuys.com/
http://www.marketwire.com/mw/release.do?id=778293&sourceType=1
http://mashable.com/2007/10/08/mybuys-funding/
http://www.pehub.com/article/articledetail.php?articlepostid=8085 (requires subscription)
http://venturebeat.com/2007/10/08/mybuys-behavioral-targeting-for-online-retailers-raises-10-million/
http://pulse2.com/2007/10/08/mybuys-raises-10-million-series-b/
http://www.bizjournals.com/sanjose/stories/2007/10/08/daily7.html?ana=from_rss
http://www.lightspeedvp.com/
http://www.palomarventures.com/
 

Entertainment, Felicis Ventures, Funding, Internet, Investments, Maples Investments, Media, Money, Social Networking, The Hit Forge, video, Web 2.0

Small round for Mesmo.tv

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The social video bookmarking and recommending service Mesmo.TV and provider of a very popular Facebook application, has secured over half of a $900,000 round of Series A financing.

Mesmo.TV’s Davin Miyoshi informed the public that Aydin Senkut’s Felicis Ventures, Mike Maples’ Maples Investments, Naval Ravikant’s The Hit Forge, and Georges Harik participated in the round. Simply put their tool allows users to rate and tag the videos that they enjoy. Mesmo.TV is then recommending videos to you and introduces you to other viewers with similar viewing habits and interests.

This tool, however, has not turned out to be the most successful part of Mesmo.TV’s business. The company’s TV Show Trivia  Facebook application, which launched in August, has garnered over 1.3 million users and over 125,000 daily unique visitors. This puts the application amongst the top 45 applications on Facebook, and made Mesmo.TV the largest TV show community on that social network.

Mesmo.TV plans to continue focusing on its social network efforts and looks forward to expanding to other networks, such as MySpace, who might open up in the near future. The company is also talking with TV networks to bring online videos to its users.
About Mesmo TV

“Mesmo TV” (formerly called TV Show Trivia) is the largest social TV application and community on the Facebook Platform. On Mesmo TV you can play TV trivia, discuss your favorite shows and share your favorite characters and quotes with your facebook friends. MesmoTV is building highly engaging, fun, social TV applications that that allow you to engage with your friends and favorite shows.

Mesmo.TV has been funded by a group of talented and successful entrepreneurs and some of the key people are listed below.

Davin Miyoshi Co-founder/CEO 
Jesse Hull Co-founder/CTO 
Debarshi Kar Co-founder/VP of Engineering 
Daphne Carmeli Board Member 
Auren Hoffman Board Member 
Cindy McCaffrey Board Member 
Munjal Shah Board Member 
Ben T. Smith, IV Board Member 
Aydin Senkut Investor 
Mike Maples Investor 
Naval Ravikant Investor 
Georges Harik Investor 

More

http://www.mesmo.tv/
http://blog.mesmo.tv/2007/05/about-us.html
http://apps.facebook.com/tvtrivia/?entrySource=mesmohomepage
http://apps.bebo.com/mesmotv/?entrySource=mesmohomepage
http://apps.facebook.com/tvtrivia/
http://www.crunchbase.com/company/mesmo.tv
http://www.techcrunch.com/2007/10/04/social-video-company-mesmotv-raises-900000-of-series-a-funding/
http://www.pehub.com/article/articledetail.php?articlepostid=8047
http://www.techcrunch.com/2007/07/17/mesmotv-discovers-videos-you-like/

Alexandra Investment Management, Business, Funding, Internet, Investments, Money, Noble Grossart Investments, Prokom Investments, Search Engines, Semantic Apps, Semantic Web, Technology, Web 2.0

Hakia takes $5M more, totals $16M

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In a new round of funding Hakia, the natural language processing search engine has raised additional $5M. The money came from a previous investor, some of which are Noble Grossart Investments, Alexandra Investment Management, Prokom Investments, KVK, and several angel investors. With plans of fully launching some time next year, Hakia has been working towards improving its relevancy and adding some social features like “Meet the Others” to their site. Hakia is known to have raised $11 million in its first round of funding in late 2006 from a panoply of investors scattered across the globe who were attracted by the company’s semantic search technology. As far as we know, the company’s total funding is now $16M.

We think that from all alternative search engines, excluding Ask.com and Clusty.com, Hakia seems to be one of the most trafficked engines with almost 1M unique visitors as we last checked the site’s publicly available stats. If it is us to rank the most popular search engines I would put them the following way: Google, Yahoo, Ask.com, MSN, Naver, some other regional leaders, Clusty and perhaps somewhere there is hakia going.

On the other hand and according to Quantcast, Hakia is basically not so popular site and is reaching less than 150,000 unique visitors per month. Compete is reporting much better numbers – slightly below 1 million uniques per month. Considering the fact the search engine is still in its beta stage these numbers are more than great. However, analyzing further the traffic curve on both measuring sites above it appears that the traffic hakia gets is sort of campaign based, in other words generated due to advertising, promotion or PR activity and is not permanent organic traffic due to heavy usage of the site.

In related news a few days ago Google’s head of research Peter Norvig said that we should not expect to see natural-language search at Google anytime soon.

In a Q&A with Technology Review, he says:

We don’t think it’s a big advance to be able to type something as a question as opposed to keywords. Typing “What is the capital of France?” won’t get you better results than typing “capital of France.”

Yet he does acknowledge that there is some value in the technology:

We think (Google) what’s important about natural language is the mapping of words onto the concepts that users are looking for. To give some examples, “New York” is different from “York,” but “Vegas” is the same as “Las Vegas,” and “Jersey” may or may not be the same as “New Jersey.” That’s a natural-language aspect that we’re focusing on. Most of what we do is at the word and phrase level; we’re not concentrating on the sentence. We think it’s important to get the right results rather than change the interface.

In other words, a natural-language approach is useful on the back-end to create better results, but it does not present a better user experience. Most people are too lazy to type in more than one or two words into a search box anyway. The folks at both Google and Yahoo know that is true for the majority of searchers. The natural-language search startups are going to find out about that the hard way.

Founded in 2004, hakia is a privately held company with headquarters in downtown Manhattan. hakia operates globally with teams in the United States, Turkey, England, Germany, and Poland.

The Founder of hakia is Dr. Berkan who is a nuclear scientist with a specialization in artificial intelligence and fuzzy logic. He is the author of several articles in this area, including the book Fuzzy Systems Design Principles published by IEEE in 1997. Before launching hakia, Dr. Berkan worked for the U.S. Government for a decade with emphasis on information handling, criticality safety and safeguards. He holds a Ph.D. in Nuclear Engineering from the University of Tennessee, and B.S. in Physics from Hacettepe University, Turkey.

More

[ http://venturebeat.com/2007/12/12/hakia-raising-5m-for-semantic-search/ ]
[ http://mashable.com/2007/12/12/hakia-funded/ ]
[ http://www.hakia.com/ ]
[ http://blog.hakia.com/ ]
[ http://www.hakia.com/about.html ]
[ http://www.readwriteweb.com/archives/hakia_takes_on_google_semantic_search.php ]
[ http://www.readwriteweb.com/archives/hakia_meaning-based_search.php ]
[ http://siteanalytics.compete.com/hakia.com/?metric=uv ]
[ http://www.internetoutsider.com/2007/07/the-big-problem.html ]
[ http://www.quantcast.com/search/hakia.com ]
[ http://www.redherring.com/Home/19789 ]
[ http://web2innovations.com/hakia.com.php ]
[ http://www.pandia.com/sew/507-hakia.html ]
[ http://www.searchenginejournal.com/hakias-semantic-search-the-answer-to-poor-keyword-based-relevancy/5246/ ]
[ http://arstechnica.com/articles/culture/hakia-semantic-search-set-to-music.ars ]
[ http://www.news.com/8301-10784_3-9800141-7.html ]
[ http://searchforbettersearch.com/ ]
[ https://web2innovations.com/money/2007/12/01/is-google-trying-to-become-a-social-search-engine/ ]
[ http://www.web2summit.com/cs/web2006/view/e_spkr/3008 ]
[ http://www.techcrunch.com/2007/12/18/googles-norvig-is-down-on-natural-language-search/ ]

Advertising, Funding, Internet, Investments, Marketing, Media, Money, Sequoia Capital, Software, Technology, Web 2.0

Sequoia Funding for Search Engine Marketing (SEM) Firm Kenshoo

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Kenshoo, a search engine marketing firm, has received an undisclosed amount of funding from Sequoia Capital. The end-to-end search marketing solution aimed at advertisers and ad agencies operates on an automated technology for advertising campaigns, and a core feature of the company’s suite of offerings relies on the longtail keyword expansion. It is an exclusive search formula using patented multilingual keyword expansion, automatically identifies thousands of related keywords from real user search terms with no need for manpower and hours of effort. Updates are provided on a constant basis on the campaign ensuring updated information on the exact keywords.

The basic idea behind their concept is to minimize the amount of man power needed to run a successful and informed advertising campaign online. Running an AdWords or related CPC text ad campaign is a time consuming and hard science process

Those advertisers that are savvy into it run up against the mind numbing tasks to entering data over and over again so they can run side-by-sides and constantly improve their dollar efficiency, and changes based on one cent’s move in either direction can sometimes mean the difference between a profitable ad campaign and one that ends up losing tons of money.

So it seems there is a growing need for automated tools in regards to online advertising and marketing, especially with the growing number of ways in which campaigns can be distributed across the web.

Their flagship product is called KENSHOO SEARCH(tm) and provides automated management for campaigns across multiple search engine platforms such as Google, Yahoo and MSN.

KENSHOO SEARCH(tm) is an end-to-end SEM platform, which automates the process of building and optimizing cross channel search campaigns.

Quality Management with KENSHOO SEARCH

Quality Management is a unique approach which automates all aspects of Search campaigns. Bid management is not enough anymore! In today’s search engines arena, creating a successful SEM campaign consists of a wide array of elements;

  • Selecting relevant keywords
  • Updating deep links URL’s
  • Creating effective ads
  • Providing and constantly updating bids
  • Monitoring the traffic
  • Structuring cross platform campaigns
  • Reporting and analyzing data on-time

Long-tail keyword expansion

Kenshoo’s exclusive search formula guarantees every search engine marketing campaign a long tail. By using patented multilingual keyword expansion, KENSHOO SEARCH(tm) automatically identifies thousands of related keywords from real user search terms- with no need for manpower and hours of effort.

Dynamic Sites

Website content perpetually shifts as new and improved products reach the cyber-shelves. The need for updating multiple campaigns is vital in order to keep up with this ever-changing environment. With the unique ability to automatically update itself as web content changes, KENSHOO SEARCH(tm) enables the client high ROI SEM campaigns. By staying in tune with this constantly changing environment, KENSHOO SEARCH(tm) seamlessly index a site and upload the exact model/brands or other keywords and data together with the deep link URL to the search engines. This enables the upload of the merchant’s products onto the Search engines as well as updating it as the site changes. The added bonus is the low cost per click, high CTR, high conversion rates and maximized ROI that result from the highly relevant landing page.

Intelligent Bid Management

Featuring an easy-to-use and configurable Bid Management solution, KENSHOO SEARCH ™ allows your bids to be flexible, applying its’ logic to all major search engines, it even allows you to create your own bid policy. Whether your products require maximum exposure or a positive ROI on any level, KENSHOO SEARCH(tm) follows campaign behavior in real time, detecting changes and reacting to the competition, insuring high ROI on your SEM campaigns.

Click Fraud

KENSHOO SEARCH(tm) offers the invaluable asset of identifying click fraud in real time. With the ability to manage multiple campaigns all at once, KENSHOO SEARCH(tm) reports the detection of Click Fraud immediately, protecting advertisers from over clicking, and allowing clients to obtain a refund. In addition, KENSHOO SEARCH(tm) has ability to pause campaigns when sites malfunction.

Quality Reporting

Stay on track with comprehensive reporting of your campaigns. KENSHOO SEARCH(tm) understands the importance when it comes to reporting. With Kenshoo search, in-depth reports are created that analyze traffic from different networks, displaying click distribution and ROI geographically, daily, and hourly, to take your campaigns to the highest level of success.

Kenshoo’s service enables advertisers and agencies to reach high volumes and optimize campaigns.

To utilize their services you simply give them your URL, and a designated account manager will assist you wit the process. They work hard to understand your targets and goals, analyze your website, assess your campaign, and optimize it to suit your individual needs.

The company is based in Israel. In August 2007, Kenshoo began applying its search engine marketing analytics on behalf of its first large client, AOL-owned IM company ICQ, also based in Israel. It also works with agencies such as McCann-Erickson and AlthogetherDigital. A representative for the company said one-year-old Kenshoo is focused on bringing its business to the UK sometime early next year. Once it’s up and running in Europe, Kenshoo then plans to build a U.S. presence.

Yoav Izhar-Prato, CEO and co-founder of Kenshoo adds, “We are thrilled to be joining forces with Sequoia, a partner with an unsurpassed track record of successful Internet investments such as Yahoo!, Google, Apple, PayPal and YouTube. Kenshoo is determined to be the leading provider of innovative Search Marketing solutions; harnessing our in-depth knowledge of the industry, our clients’ constructive feedback, technological strengths and continuous innovation- I believe we are well positioned to do so.”

Sequoia Capital is the Google backer and it is coming as no surprise they are funding a company that is helping in particular users and customers that are spending their ad money on Google.

Although Moritz sat on the evaluating committee, he is not the investing partner from Sequoia. Yuval Baharav, a partner in Sequoia’s Israeli office, is the one who invested and will take a board seat. This is Kenshoo’s first venture round. Terms were not disclosed, although one report in an Israeli paper puts it at a few million dollars. Previously, the startup raised about one million dollars from angel investors, and has been funding itself from operations.

More about Sequoia Capital

Since 1972, Sequoia Capital has provided startup venture capital for very smart people who want to turn ideas into companies. As the “Entrepreneurs Behind the Entrepreneurs,” Sequoia Capital’s Partners have worked with innovators such as Sandy Lerner and Len Bozack of Cisco Systems, Jerry Yang and David Filo of Yahoo!, Gaurav Garg of Redback Networks, Larry Page and Sergey Brin of Google, Dan Warmenhoven of Network Appliance, T.J. Rodgers of Cypress Semiconductor, Lou Tomasetta of Vitesse Semiconductor, Steve Jobs of Apple Computer and Larry Ellison of Oracle. The companies organized by Sequoia Capital now account for about 12% of the value of NASDAQ.

More about Kenshoo Ltd

Kenshoo is a provider of end-to-end search marketing automated technology for advertisers and agencies worldwide.

The company’s flagship product KENSHOO SEARCH(tm) provides automated Quality Management for cross- platform search campaigns. Kenshoo’s unique technology and approach enables advertisers and agencies worldwide to reach high volumes, optimize campaigns and to boost ROI.

Kenshoo is an innovator in Search Engine Marketing with extensive industry knowledge and a dynamic approach. Kenshoo’s strength is in developing SEM technology to increase ROI on search campaigns.

Kenshoo’s flagship product, KENSHOO SEARCH(tm) is an end-to-end SEM platform, which automates the process of building and optimizing cross channel search campaigns. KENSHOO SEARCH?utilizes Quality Management, the company’s unique approach to search marketing that automates much of the labor intensive search marketing operations.

As a Google Qualified Company, a Yahoo! Ambassador and Microsoft adExcellence, Kenshoo provides its licensed SEM platform and services to publishers, agencies, blue-chip advertisers, and affiliate marketers world wide.

Management Team

Yoav Izhar-Prato, CEO & Co-Founder- As a founder of several start-ups around the globe and former manager of ECI Thailand, Mr. Izhar-Prato brings over ten years of business management to Kenshoo. Mr. Izhar-Prato carries an Executive B.A., Business management from Ruppin College.

Alon Sheafer, VP Marketing & Co-Founder- Mr. Sheafer brings over ten years of internet experience to Kenshoo. Alon has a strong Technological background combined with sales and marketing experience. Formerly founder and CEO of Bazman, a price comparison website. Mr. Sheafer holds a B.Sc in Computer Science from the Academic College of Tel-Aviv Jaffa.

Nir Cohen, CTO & CO-Founder- As former founder and CTO of Bazman, a price comparison website, Mr. Cohen carries years of experience in leading design and development teams for companies such as Demantra and Imperva. Mr. Cohen holds a B.Sc in Physics & Computer science from Ben Gurion University, Israel.

Andrey Shirben, Head of Campaigns- A former VP in marketing with Storewiz Ltd, Mr. Shirben brings a history of technology experience to Kenshoo. As Head of Campaigns, Mr. Shirben’s background lies in business management and computer science with a BA in Management & Computer science from Open University in Israel.

Udi Broyer, CFO & COO- Mr. Broyer brings over ten years of Financial and operational experience to Kenshoo. Mr. Broyer previously served as the Director of Finance of Metacafe a leading UGC Video web site. He held various executive financial positions such as financial consultants for JVP a Venture Capital firm and VP of Finance at Fundtech. Mr. Broyer is a CPA and served as a Senior Audit Manager in the high-tech group at “Ernst & Young” Israel. Mr. Broyer holds a B.A in Accounting and Economics at the Hebrew University in Jerusalem, Israel.

The market

SEM (Search Engine Marketing) is the younger brother of SEO (Search Engine Optimization). In general who fails to perform well on the SEO scene is forced later to rely on the SEM. SEO promises organic results and traffic while SEM does that for paid campaigns. On the other hand we think there are thousands of large-scale corporations and millions of small ones that have little to no ideas on how to develop white-hat SEO practices for their web based businesses and are in one way or another going to rely and depend on SEM and companies like Kenshoo for instance.

Otherwise the SEM market is very crowded and the environment is extremely competitive; there are literally thousands of small and mid-level SEM firms in the sector, yet having Sequoia on your side might be one step in the right direction for Kenshoo. I remember one firm in particular called Fathom Online. Fathom Online received $6 million in financing in its first round of venture funding a few years ago. The financing came from Constellation Ventures and private investors. As part of the funding, Constellation managing directors Virginia Turezyn and Dennis Miller have joined Fathom’s board of directors by that time. What we know Former Ask Jeeves executives Chris Churchill and Chris Raniere founded the San Francisco-based search engine marekting firm in 2002. Fathom also helps clients design and run paid search campaigns as clients include Hilton, Covad and Microsoft..

More

[ http://www.kenshoo.com/ ]
[ http://www.kenshoo.com/blog.asp ]
[ http://www.kenshoo.com/news_sequoia_invest_in_kenshoo.asp ]
[ http://www.linkedin.com/pub/0/172/967 ]
[ http://mashable.com/2007/12/13/kenshoo-funded/ ]
[ http://www.venturecapitalupdate.com/node/970 ]
[ http://www.techcrunch.com/2007/12/10/sequoia-invests-in-sem-automator-kenshoo/ ]
[ http://www.paidcontent.org/entry/419-israel-sem-provider-kenshoo-secures-first-round-in-support-of-european-/ ]
[ http://biz.yahoo.com/prnews/071211/uktu014.html?.v=101 ]
[ http://www.fathomonline.com/ ]
[ http://www.webmasterworld.com/forum5/5033.htm ]

Business, eCoast Angels, Entertainment, Funding, Intel Capital, Internet, Investments, Money, Shopping, Technology, Web 2.0

MyPunchBowl gets angel funding, relies on algorithm to recommend best dates

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MyPunchBowl, the event planning site that has joined the new crowd of Evite rivals, has recently been angel funded. According to some sources like VentureBeat and Mashable, the exact amount of funding has not been disclosed, but it’s less than $1 million, and is enough to keep the team in development for another year, at least.

MyPunchBowl is known to have had a pretty good year, with several developments and feature upgrades to its event-planning service. More niche templates have been added to its collection, and they released their new Facebook application called “Party Animal.”

Partnerships with traditional media companies like the Boston Globe could also help to establish MyPunchBowl as a viable option for planning your next event.

In technological aspect they’ve been building out tools for each step of planning a party: finding supplies, inviting friends, setting a date, and the after party. MyPunchbowl has also made setting a date that much easier through the help of an algorithm that recommends the best date for your party. Connecting party organizers with suppliers in an algorithmic approach (supplies on-demand, recommendations in context of the party, individuals, events, at the right time and place etc.) could be a viable business model in our understanding and this is where the site is planning to make money from, see below comments.

More about Punchbowl Software

At Punchbowl Software, we believe that planning an event or party should be enjoyable and easy.

For the host, there are typically lots of pieces to organize: picking a date, sending invitations, choosing catering and entertainment, purchasing party supplies, and renting party equipment just to name a few. It can be a time-consuming process, and it usually isn’t much fun.

To solve this problem, we’ve created MyPunchbowl, a new web application for event and party planning. MyPunchbowl provides software for every stage of planning. With MyPunchbowl.com you’ll actually enjoy planning while saving time.

“They are the developers of one of the hottest websites in America and around the world. These are the folks that are at the vanguard of web development” – one reads at CNBC. 

For now, MyPunchbowl is avoiding monetizing the site through display ads. Instead, it plans to open partnerships with vendors, helping users secure any party supplies they need. To make money, the site is working on opening more relationships with vendors. A guest asked to bring the turkey to a Thanksgiving event, for example, might receive a targeted offering from Butterball.

According to Quantcast the site’s reach is less than 12,000 American visitors per month and compared to Evite.com’s 7 million uniques / mo MyPunchbowl looks like it has way too much to do in order to be called even close competitor to Evite, despite the press attention it gained over the past year http://corp.mypunchbowl.com/news.php. 

The company was founded by software and user interface experts who are fanatics about simplicity and ease of use. As they say “they were frustrated with the current tools, and knew there had to be a better way”. The funding came from Intel Capital and eCoast Angels.

As far as we know MyPunchBowl’s competitor Planypus has recently been funded as well.

Other competitors include Skobee or Renkoo although they have differentiated themselves by helping plan the casual outings for drinks or dinner. Socializr is taking a social networking approach.

The company’s founder is Matt Douglas. Douglas, whose principal offices are based in the Boston Metrowest technology center (Natick, MA), has three employees for now. Formerly of Adobe Systems and Bose Corporation, Matt Douglas has 12+ years in product management and marketing with expertise in software product development. At Adobe, Matt was responsible for Adobe Premiere where he grew revenue from $15M to $50M in four years. At Bose, he was a senior manager in the professional division where he led a hardware and software product team. Matt has a degree in music from the University of Rochester and an M.B.A. from UNC Chapel Hill. Matt’s favorite reason to party is Groundhog Day–he and his wife held their 11th annual Groundhog Day party in 2007.

Otherwise Punchbowl Software is a privately held Delaware Corporation.

The competition in the event planning sector looks intensive, but the vast majority of the startups being active in the arena have chosen specific niches, and will be trying to secure their own markets without invading each other’s territory.

More

[ http://www.mypunchbowl.com/ ]
[ http://corp.mypunchbowl.com/ ]
[ http://venturebeat.com/2007/01/15/mypunchbowl-joins-growing-list-of-evite-rivals/ ]
[ http://mashable.com/2007/10/02/mypunchbowl-funded/ ]
[ http://venturebeat.com/2007/10/02/mypunchbowl-lands-seed-funding-for-online-invitations/ ]
[ http://www.quantcast.com/mypunchbowl.com ]
[ http://www.quantcast.com/evite.com ]
[ http://www.techcrunch.com/2007/05/21/mypunchbowl-the-algorithm-schedules-your-event/ ]
[ http://www.boston.com/business/technology/articles/2007/07/22/will_boston_ever_catch_up/?p1=MEWell_Pos5 ]

Acquisitions, Business, Funding, Ingenious Media, Internet, Media, Money, Social Networking, Sports, Web 2.0

Sportingo has raised $3.2 in funding, moves to London

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Sportingo, a sports fan portal and blogging community, has raised $3.2 million in funding from London-based Ingenious Media. 

Launched early this year in Israel, Sportingo is a site where users can write their own match reviews and commentary, and discuss others’ content. With the type of content that’s created on Sportingo, this is very much a blogging community for users to contribute to the larger discussion around different sports. A wide range of sports is covered on Sportingo, from cycling to swimming, cricket and rugby to soccer and beyond.

Sportingo is known to have already acquired a UK soccer blog, CaughtOffside, in June. The site has since opened an office in London. This deal could be classified as employment through acquisition this way effectively hiring the CaughtOffside’s author Chris Toy as chief editor.

The founder of the company is the Israeli Ze’ev Rozov who has recently moved from Israel to London, UK.

About Sportingo

Sportingo is all about sport. Whether we follow football, cricket, rugby, tennis, golf, cycling, darts or tiddly winks, as fans, the main thing that we all share, is a passion for our sport. This passion has led to many late nights, arguments over pints of beer and cups of tea and neglect of partners and friends, whilst we debate the greatest sporting moments of all time, the top football players and their monetary worth, the virtues of one day international cricket matches and the need to retain the tradition of Rugby Union and Rugby League as 2 different games.

Sportingo is about fans sharing their opinions with the sports community. All fans are invited to register and write articles about any sport related event ranging from match reviews and team performances to nostalgia articles about memorable moments in sport.

Sportingo is about fans writing for fans; fans commenting and ranking the articles of other fans; fans deciding what are the topical and important stories of the day, fans setting the sport agenda.

Sportingo recently acquired the award winning football blog CaughtOffside. CaughtOffside was founded in 2006 and quickly became a leading football blog in the UK and across the world. The site focuses primarily on English football clubs and has developed a strong culture and reputation amongst the online football community.

Sportingo exists for the fans and because of the fans. As fans you are part of the website’s success. We welcome you and look forward to your contributions.

About Ingenious

Ingenious is an independent and integrated group of companies advising and investing solely in media, thereby providing a unique service to clients and investors.

Founded in 1998 by Patrick McKenna, Ingenious is one of the leading investors in the UK’s creative industries.

Our collective knowledge and experience has positioned us as the market leader in media investment and strategy and through our extensive network of relationships we are able to provide an unrivalled service to our clients.

We have the necessary depth of professional experience and expertise to provide both a high level of advisory services and investment to companies operating in the film, television, music, games and publishing sectors.

Our independence and impartiality allow us to work with a broad spectrum of other advisers, companies and financial institutions. We understand the needs of both the media sector and the investment community, thereby enabling us to work easily with both.

Alongside our private equity investments and project financing capability, we offer a range of media consultancy and corporate finance services and, through our asset management division, provide innovative solutions to the private investor.

More

[ http://www.sportingo.com/ ]
[ http://mashable.com/2007/10/02/sportingo-funded/ ]
[ http://www.paidcontent.org/entry/419-sports-fan-portal-sportingo-wins-65-funding-for-marketing-and-developme/ ]
[ http://www.ingeniousmedia.co.uk/flash.htm ]
[ http://www.sportingo.com/about_us/1001,4 ]
[ http://www.paidcontent.co.uk/entry/419-sports-fan-portal-sportingo-wins-32-funding-for-marketing-and-developme/ ]
[ http://sportingoblog.blogspot.com/2007/10/new-round-of-funding.html ]
[ http://sportingoblog.blogspot.com/2007/09/move-to-london.html ]

Funding, Intel Capital, Internet, Jeff Clavier, Ron Conway, RSS Investors Fund, Technology, Transcosmos & Business Development Inc, Web 2.0

Edgeio closes doors after burning $5M in one year

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In a final board meeting last evening Edgeio’s board members have decided to shut down operations of the company.

This failure is sort of symbolic for the Web 2.0 sector. Why? What Edgeio is interesting with? First off it has been co-founded by Michael Arrington from Techcrunch, an influential, probably the most, blog that is symbolic itself for the web 2.0 age and Arrington himself is the editor there and one of the most influential people on Web today, according many sources, including but not limited to Wired and Forbes. He is also mentoring, advising, consulting and probably brokeraging companies across the Silicon Valley and is generally well known technology evangelist. He expanded his Crunch Network with Crunchboard, Crunchgear and Mobilecrunch and is rapidly becoming the most influential journalist in the tech scene nowadays.

Aside Edgeio Michael Arrington is also having active participations in the following companies.

  • He is an investor in a stealth company called Daylife, based in New York.
  • He became an investor in Dogster on September 14, 2006
  • He is also an investor in Omnidrive since December 2006.
  • He is also an investor in Dancejam since the spring of 2007 and
  • An investor in Seesmic from November 2007, a video upstart launched by a French entrepreneur.

Aside Michael Arrington the company was also co-launched by Keith Teare and is said to be a great tool for bloggers and buyers alike. Using content from RSS-enabled sources, Edgeio is able to take millions of listings and categorize them in a central location. Early employees of Edgeio also include Vidar Hokstadt, Matt Kaufman and Fred Oliveira. Michael Arrington was not an executive but instead he served the company as a board of directors’ member.

Edgeio is all about edge publishing. It is Edgeio’s belief that services that try to restrict how users create and consume information cannot ultimately be successful. Users own their data, and services exist not to silo that data, but rather to add value to it. That is what Edgeio is setting out to do. Good mission. Simply put Edgeio will be focusing on classified listings of any type to start.

Blogs and other websites syndicating their content through RSS are an ideal place to post classified listings. Not only is the publisher in complete control of the content (what to include, when to change or update it, when to delete it and how to syndicate it for other services), but the website itself gives valuable context to readers of the listing. Unlike anonymous listing services, listings on blogs controlled by the publisher give readers an idea of who they are dealing with. That additional information is an important factor for readers in deciding if and how to interact with the publisher.

Very few blogs publish classified listings today. Most blogs have a relatively small group of readers, including friends and family, and are not able to effectively reach the larger audience needed to effectively market their listings.

That’s where Edgeio comes in. They promised to find edge published listings if they include the category or tag “listing” within the post or content. The listings will be indexed through the blog’s RSS feed and aggregated with other “listings from the edge”. Users of the Edgeio service will be able to search through listings and communicate directly with the publisher. Edgeio will also make aggregated listings available though a web service to other Internet sites and services that would like to include edge listings.

Edgeio promised to never attempt to silo or control publisher data, or restrict the ways that listings can be used by others.

The company has also launched a Chinese language version of its web site named mulu100.com (which in Chinese means catalog of catalogs). The Chinese service has initially formed a partnership with edeng.cn, a China based listings site, similar in many ways to craigslist.com.

Edgeio recieved $1.5 million in angel funds from the likes of Louis Monier, Frank Caufield, the RSS Investors Fund, Jeff Clavier, Ron Conway, Michael Tanne, Auren Hoffman, Sam Perry and Bill McCabe.

In October 2006 Edgeio Closed $5 Million Series A Funding led by Intel Capital and also included an investment from Transcosmos & Business Development Inc, a Japanese public company with a Silicon Valley investment arm focused on Internet-based U.S. technology companies expanding into the Japanese marketplace.

The company burned through that money according to plan, meaning they ran out this month. The product roadmap was fulfilled; meaning development lags didn’t hurt the company. No revenues came in and the user/partner milestones weren’t met and no one else was going to put more money into the company.

Employees will be let go but will be fully paid according Michael Arrington.

When being asked from a commenter on his blog what the company spent the money for Michael Arrington jokingly replied “parties, scotch, hookers, blow. You know the usual.”

The company seems to have failed even though Edgeio got a serious amount of coverage and in-context mentions on Techcrunch over the past years. All entries can be found over here: http://www.techcrunch.com/tag/edgeio

De-facto it also affects another initiative of Techcrunch the Crunchboard.com, which will also undergo restructuring in the next days as they say. 

Michael Arrington also has said ”it is unwise for a company to spend a lot of money building out infrastructure before a product proves itself as well as they always had problems with the PayPal API, which is a total piece of crap”

Here are some more interesting thoughts for food.

Advertising on TechCrunch is not cheap – $10,000 per month and Edgeio is known to have been an advertiser at TC for quite long period of time. The site was also used in TC’s job site www.crunchboard.com, which in our understanding did also cost money for the Edgeio. Having an influential company the rank of TechCrunch adopt and use your company’s services or products in our view is more expensive than having a banner rotating on the TC’s blog network.

The company was recently caught (September 2007) to be spamming Bloggers, which was even criticized by Arrington himself calling it ”Bad Idea”.

It is really interesting to see how things in SV tend to work. You have an idea, find an angel or two, prepare for the series A funding, raise the money, give it a try, if it work things out fine, if not then also fine, you close shop, go home, take some rest and try again later with another start up.

Indeed the company looks very good and healthy to us. Well done technology, good idea/concept, good numbers, was well funded, high-profile people involved and engaged and beyond. Quantcast reports for over 150,000 unique visitors from US alone while Compete is showing very healthy number of visitors – 348,797. Edgeio has access to over 100 million listings in 1,484,953 cities and 166 countries, 9,190,705 listings from 1,405 edge-direct feeds and 2,736 listings from 134 Classified Boards.

So what went wrong?

Why the company did not take a series B round of funding or tried to sell itself before crashing down? The business plan to start generating revenues was too pushful and unrealistic, in less than one year after funding? The company seems to have been given with less than a year to break-even? By contrast I remember another company that got coverage on Techcrunch Mahalo, started out by Jason Calacanis and was said that the company is having enough money to survive for at least 5 years without making any money at all. The company could have even been sold or profitably liquidated in one way or another and not simply closed.

So is there anything behind the scene that the public is not aware of?

Well, the very simple conclusion we can draw here is that a company success is not always guaranteed solely by who the investors or founders are… The DNA of the success with a company probably lies somewhere else and is a complex of factors, interests and events. 

Via

[ http://www.edgeio.com ]
[ http://wiki.edgeio.com/display/ExternalWiki/Home ]
[ http://blog.edgeio.com/2006/10/23/series-a-financing-china-web-site-and-patent-filing/ ]
[ http://www.techcrunch.com/2007/12/06/edgeio-to-shut-down-in-the-deadpool/ ]
[ http://www.crunchbase.com/company/edgeio ]
[ http://www.techcrunch.com/2007/09/30/edgeio-spams-bloggers-bad-idea/ ]
[ http://www.techcrunch.com/tag/edgeio ]
[ http://www.techcrunch.com/2006/10/24/edgeio-closes-5-million-series-a-financing/ ]
[ http://venturebeat.com/2006/10/23/edgeio-gets-5-million-to-expand-web-20-classifieds-site/ ]
[ http://www.businessweek.com/the_thread/techbeat/archives/2006/10/edgeio_has_been.html?campaign_id=rss_blog_blogspotting ]
[ http://gesterling.wordpress.com/2006/10/24/edgio-gets-5-million-in-vc-money/ ]
[ http://www.quantcast.com/edgeio.com ]
[ http://siteanalytics.compete.com/edgeio.com/?metric=uv ]
[ http://www.zoominfo.com/Search/CompanyDetail.aspx?CompanyID=49351685&cs=QGC8QwFIE&pc=compete ]
[ http://rexdixon.wordpress.com/2006/10/24/edgeio-secures-5-million ]
[ http://www.techcrunch.com/about-techcrunch/ ]
[ http://www.crunchboard.com/ ]
[ http://en.wikipedia.org/wiki/Michael_Arrington ]
[ http://www.teare.com/category/keith-teare/edgeio ]

Accel Partners, Business, Funding, Greylock Partners, Hutchison Whampoa Limited, Meritech Capital, Money, Peter Thiel, Social Networking, Technology, Web 2.0

Hong Kong billionaire Li Ka-shing Invests $60m in Facebook. Funding totals $338.20M to date

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Hong Kong billionaire Li Ka-shing Invests $60m in Facebook. Facebook now has $338.20M in cash to play with. Plans are the company to go public in 2008 or 2009 according to some rumors within the sector.

Facebook is hugely popular social networking site, second only to MySpace in terms of users. Other popular social networking sites are Bebo and Friendster, the second one tried to acquire Facebook in 2004 for just $10M.

The latest comScore metrics, we have seen, revealed that Facebook is actually site #16 (others claim it is #6 today) in US with nearly 70M unique visitors per month and more than 50M registered and active users.
 
Peter Thiel, cofounder of PayPal and managing partner of the Founders Fund was the first angel investor in the company. He invested $500,000 into Facebook in early 2004. Later Accel Partners poured $12.7 million more in funding, at a valuation in the $100 million range.

The next year [2006], Facebook received $25 million in funding from Greylock Partners and Meritech Capital, as well as returning investors Accel Partners and Peter Thiel. The pre-money valuation for this deal was in the $525 million range.

Facebook is reported to have turned deals down from Friendster, Yahoo, Viacom  and the mighty Google a couple of months ago when Zuckerberg has chosen Microsoft to partner with. Microsoft de-facto has invested $240 million into Facebook for just 1.6 percent of the company in October 2007. This put the company’s valuation at over $15 billion on just $150 million in annual revenues.

Mr. Li Ka-shing is the Chairman of Cheung Kong (Holdings) Limited and Hutchison Whampoa Limited. Cheung Kong (Holdings) Limited is the flagship of the Cheung Kong Group which has business operations in 55 countries around the world and employs about 250,000 staff. In Hong Kong alone, the Group includes eight listed companies with a combined market capitalization of approximately HKD981 billion (31 October 2007). Hutchison Whampoa Limited is a Fortune Global 500 company.

It would be interesting to find out what’s the equity position Mr. Li Ka-shing has secured for his $60M considering what Microsoft has bought for their $240M. 

Via

[ http://www.crunchbase.com/company/facebook ]
[ http://www.techcrunch.com/2007/11/30/another-60-million-for-facebook/ ]
[ http://kara.allthingsd.com/20071130/facebook-nabs-60-million-investment-from-li-ka-shing/ ]
[ http://www.hutchison-whampoa.com/eng/about/chairman/chairman.htm ]

Advertising, Funding, Galleon Crossover Fund, Rho Ventures, VantagePoint Venture Partners

ReachLocal Stands at Good Chances When it Comes to Location Based Advertising

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As we wrote yesterday a couple of months ago a company called ReachLocal raised a massive amount of money – $55 million at a pre-money valuation in the $300 million range.

ReachLocal provides online advertising services for small businesses. The company’s investors include Rho Ventures, with Galleon Crossover Fund also participating, and VantagePoint Venture Partners as return investors. This recent round of funding comes after the $12.7 million the local ad company has raised since its inception in 2004. This gives ReachLocal an estimated valuation at $305 million, which is $55 million more than its previous valuation.

With that amount in its pockets ReachLocal stands at very good chances to reach a good market share in the location based online advertising market where mature companies like Yellowpages and SuperPages dominate the sector. Nokia has recently been seen to deploy location based mobile services and ads.  Google and Yahoo are also serious about serving ads on the local markets too.

On the ReachLocal’s video, it seems that their real value proposition is that they’ve integrated online and offline touch points (points of contact), and can track and report on this for small & medium businesses, which in most cases do not have high hurdles of integration.

ReachLocal has only one purpose as they claim: getting businesses in front of local buyers and converting “searchers” into customers.

The company is said to have patent-pending campaign optimization, management and tracking technologies, which offer unique benefits for advertisers and make it possible to follow a prospect’s progress from searcher to customer in unprecedented detail.

ReachLocal is a privately held, venture capital-backed company headquartered in Woodland Hills, CA.

Competition include Yodle, SquidBids and upspring.

[ via Mashable ]

[ via MarketingPiligrim ]

Acquisitions, Funding, Uncategorized

Web2Innovations.com Launches Web 2.0 Money

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Web 2.0 Money is a new initiative of Web 2.0 Innovations to discover, report and analyze the money behind the Technology and Internet Industries. We will start from some of the earliest funding deals we know about as discovered by us at the following web addresses through out the past year and a half:

Web 2.0 Innovations We do believe there is a significant correlation between the web 2.0 industry at all and the money within. Although the vast majority of the great web 2.0 innovations that took place over the past 2 years were either funded or acquired we still see a pretty large number of web 2.0 innovative projects, start-ups and companies with little to no money allocated to them.

Based on our observation and despite that many people are claiming that no location plays any role where innovation happens (although some do), it appears that 90% of all funding and acquisition deals that took place within the web 2.0 industry sector since 2005 happened to be in California and Silicon Valley in particular. 5% or something did happen in the rest of US as again only a few states dominated like New York, Massachusetts, Illinois, Virginia, Texas and one, as far as we know, in Indiana, a deal on a company, which many IT experts and influencers disagreed to be considered web 2.0 innovation. The rest of the deals appeared on the business map of just a few more countries such as U.K., Sweden, Norway, France, China and one in Singapore.

Basic conclusion: while it might be true that web 2.0 innovation is happening all over the world, it clearly seems the money from web 2.0 innovations can only be made within the US.